The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1887-09-03
BIG RAILROAD DEAL.
Formation of q Transatlantic
Syndicate.
THERE'S MILLIONS IN IT."
The Preliminary Contracts Signed
The B. 8 o In the Lead.-The
Rumor CONFERENCE.-The.
The ereat Railro.d scheme.

tinued rumors from all sources that
some important developments were
hanging over the railroad and telegraph
world, were explained by facts which
were made public late this afternoon.
After breaking of his negotiations with
Ives & Co., Mr.. Garrett went to Lon
don, where negotiations were continued
with J. s. Morgan, and to-day a deal
was announced comparable to the
West Shore settlement with the New
York Central, and forming OF Reading
syndicate to re-oTgsnize that company.
Both the deals were carried through by
Drexel, Morgan & Co., but in the latter
case Ward Lauterbach was the most
prominent as mediator between the
Govan and Drexel Interests. In the
agreement now made he also takes
prominent place. The contamination
of the contract made to-day was held IN
allowance, until his opinion was OBJ
tanned on the question OF whether the
sterling loan made by the Baltimore
and Ohio Railroad covered the tele-
graph system of the company. After
studying the question IN all Its aspects,
he decided that the telegraph lines were
free from all liens, and on receiving this
opinion an agreement in the nature
of preliminary contract was
executed to dav. The parties to the
contract are the Baltimore & Ohio Rail
way Company, and a. syndicate COM
posed of ]. S. Morgan & Co., Barring
Brothers & Company, Brown, Shipiey
& Co., of London, Drexel, Morgan &
Co., Kidder, PEABODY & Company and
Brown Brothers of this city and Dre1el
& Co, of Philadelphia. The most i'm
portant point in the contract provides
that the man agement of the company
shall be placed in competent hands,
satisfactory to the syndicate. Who will
be satisfactory to the syndicate cannot
be ascertained, but Z. J. Cassatt, vice
president of the Pennsylvania
Railroad, is generally believed to
be booked as Barrett's successor.
Satisfactory contracts are also to be
made with the Pennsylvania & Reading
Railway, on all business north of Phlla.
delphia, and with all the other trunk
lines entering New York, by which all
antagonism Will be removed, and insure
the permanent working of the Balti-
more & Ohio in harmony with other
trunk lines, and in addition to these
trunk contracts, the lines in process OF
construction from Philadelphia to New
York will be suspended in their con-
struction; also work on the Staten
lbIduu VIII De SIOPPeu' IL OOhStuoAo
ton of these contracts being signed,
and with the control in their
hands, the syndicate agree to
relieve the railroad from its pres
ent embarrassment by providing
$4,000 900 with which to take up the
floating debt. This will be represented
by SIS 900, 900 in Baltimore & Ohio con-
solidated fives, and 100000 preferred
stock. The floating debt, as it now
stands, amounts to $7.000,000, mostly
in the shape of certificates of indebted
ness, scrip and notes. Of this amount,
$4,000, 900 is said to have matured on the
1st instant. One of the parties TO the
syndicate authorized the following
statement as the outcome of the con-
tract: The position of the Baltimore
& Ohio road as an Ishmaelite in the rail-
road, sleeping car, express and telegraph
business, is given IN. All the outside
enterprises will be sold to parties to
whom they will be valuable. The
Western Union will control, if it does not
buy, the telegraph lines, and the Pull
man Palace Car Company will take the
sleeping car business. The express
business has already gone to the United
States Express Company. The affairs
of the Railroad Company will be en-
tirely re- organized, and placed upon a
sound financial basis. Drexel, Morgan
& Co., were in direct correspond
ence with their house in London and
Philadelphia, and late in the evening,
confirmed the statements that the con-
tracts given above had just been signed
Outside of 1.-THE facts given above. they
decline to speak. The clause of the
contracts suspendiEg all work of ex-
tensions from Philadelphia to New
York is believed to be the keynote of
the syndicate's interest in the negotia-
ton and is construed to mean that the
Baltimore & Ohio railway, when di-
vested of e9traneous enterprises, will
be operated pI sctically by the Pennsyl-
vania Railroad. The following has
been issued by the firm Of Drexel, Nor
gan & Co.: 4 preliminary contract hiss
heen executed between the Balti-
more & Ohio railway company
to-day, and Bsrding Bros. & Co.,
and Brown Sbiply & Co., London, and
contract provides for the negotiation of
IS 600, 600 Baltimore 81 Ohio CONSOLE
dated fiYes, S., 900, 900 Baltimore & Ohio
preferred stock for the purpose of pay
ing off the entire floating debt of the
company, and placing it on a sound
financial basis. The conditions are as
follows: First-The verifcation of set
Elements etc, as made. Second-That
the management of the company shall
be placed in competent hands, satisfsc-
tory to the syndicate. Third-That
satisfactory contracts shall be made
between the Baltimore & Ohio
and the other roads for New
York BUSINESS which shall re-
move the antagonism between them
on tie subiec ,aAd insl re the perma-
nency OF other trunk lines; and also
avoid the construction or threat of con-
struction of expensive parallel lines
north and east of Philadelphia. The
houses interested on this side are
Drexel, Morgan & Co., Drexel & Co.,
Brown Bros, and Kidder Peabody &
Co.
Boils, pimples, hives, ringworm, tet-
ter, and all other manifestations OF i'm
4 4 u..I - Irarndln Ca